Fitch downgrades home builder PulteGroup

Fitch Ratings downgraded two ratings on home builder PulteGroup this week as a result of the lifeless housing market, Housing Wire reported. PulteGroup’s issuer default and senior unsecured debt ratings were shifted to BB from BB+ yesterday in light of a softening economy and subdued growth expectations in housing for the rest of 2011 and 2012.
PulteGroup reported second-quarter losses of $55.4 million, or 15 cents a share, as it took significant organizational restructuring and debt repurchase charges for the quarter.
“If the economy continues its currently lackluster advance and a relatively modest number of jobs are added, housing metrics should moderately decline this year, a more bearish forecast than earlier in the year,” Fitch analysts said. “Fitch is projecting a modest improvement for housing off a very low bottom in 2012.” [Housing Wire]